Apple (AAPL), a long-time leader in stock market gains, recently hit new all-time highs, showing strong momentum. With stocks that hit new highs often continuing to rise, it’s worth considering if Apple remains a good buy.

Apple’s Financial Performance and Upcoming Earnings

Apple is set to report its next quarterly earnings on October 31st. Current expectations are flat compared to the end of July, although recent downgrades in October have garnered attention. Modest growth is anticipated, with earnings per share (EPS) projected to rise by 5% year-over-year to $1.54, while revenue is forecasted at $94.5 billion, up 5.6% from last year.

A key metric to watch is Apple’s Services segment, which has consistently outperformed expectations. The current consensus estimate for Services revenue is $25.8 billion, marking a 15% increase and an all-time high. Investors will also look for updates on the iPhone 16 and Apple’s AI developments.

Valuation and Growth Potential

Apple’s valuation is higher than its five-year median, with a forward 12-month price-to-earnings ratio of 30.5x, compared to a five-year median of 26.3x. While this valuation is elevated, it reflects investor confidence in Apple’s stable earnings growth. Apple’s PEG ratio is also above its median at 2.4x, and the stock’s 5% annualized dividend growth rate over five years makes it attractive for income-focused investors.

Should You Buy Apple Shares?

Despite a slightly elevated valuation, Apple’s robust fundamentals, steady earnings growth, and promising developments in Services, iPhone 16, and AI make it a strong candidate for investors. While growth isn’t as rapid as in the past, the company’s core strengths make it a compelling addition to portfolios.